Ethiopia has inaugurated a precious metals refinery developed in partnership with UAE-based Sam Precious Metals, aiming to attract gold from across Africa and expand its role in the continent’s mineral-processing industry. Launched on October 10 at the Bole Lemi Special Economic Zone in Addis Ababa, the facility has a stated annual processing capacity of more than 600 tonnes of precious metals.
The project is a joint venture between state-owned Ethiopian Investment Holdings (EIH), which holds a 51% stake, and Sam Precious Metals, which owns the remaining 49%. Prime Minister Abiy Ahmed said the partnership would strengthen domestic processing capacity and help position Ethiopia as a regional refining center.
The refinery represents an initial investment of $50 million, Reuters reported. Its operations include testing, refining and casting precious metals, as well as producing gold and silver bars.
Regional ambitions and international investment
Ethiopia aims to attract gold from neighboring countries and regional mining companies for refining, certification and sale, according to government statements. The facility is intended to enable producers to process their gold within Africa rather than send it to refining centers elsewhere.
The project comes as Ethiopia seeks to retain more value from its mineral resources. Gold exports generated $5.6 billion in foreign exchange in 2025, according to government data cited by Reuters. Domestic refining could give the country greater control over processing and export preparation, although the refinery’s expected output and the volume of gold it may receive from other African countries have not been disclosed.
The announced capacity of more than 600 tonnes annually refers to potential processing at full operation, not Ethiopia’s gold production or the refinery’s current output. It also covers precious metals collectively, rather than gold alone.
The partnership highlights the role of foreign investment in Ethiopia’s efforts to expand industrial capacity. With EIH retaining majority ownership, the venture combines state-backed investment with a foreign commercial partner in a sector the government sees as important for export earnings and economic diversification.
The refinery’s longer-term impact will depend on its ability to secure reliable supplies, meet international quality and certification requirements, and attract customers from other African markets. If it succeeds, the facility could strengthen Ethiopia’s position in the regional precious metals trade and support its broader effort to move beyond exporting unprocessed resources.
